|
|
Disability Insurance Needs
|
|
How much coverage should I consider?
|
|
You would want to obtain enough coverage to maintain your present lifestyle. This means taking into account all expenses. Keep in mind that income from Social Security benefits or employer related plans most likely would not come close to covering your expenses. Typical policies range from 60 to 70 percent of pre-tax income.
The table below calculates what your potential earnings may be up to age 50. Thus if you were to become disabled at age 35, and your monthly income was $3,000 per month, you would face a lifetime loss of $1,460,451.00 in wages.
|
| Current Monthly Income |
| Age |
$2,000 |
$3,000 |
$4,000 |
$5,000 |
$7,000 |
$10,000 |
$15,000 |
| 25 |
1,449,648 |
2,174,471 |
2,899,295 |
3,624,119 |
5,073,767 |
7,248,238 |
10,872,357 |
| 30 |
1,199,867 |
1,799,801 |
2,399,735 |
2,999,669 |
4,199,563 |
5,999,337 |
8,999,006 |
| 35 |
973,634 |
1,460,451 |
1,947,268 |
2,434,085 |
3,407,719 |
4,868,17 |
7,303,254 |
| 40 |
768,727 |
1,153,091 |
1,537,454 |
1,921,818 |
2,690,545 |
3,843,636 |
5,765,454 |
| 45 |
583,137 |
874,705 |
1,166,274 |
1,457,842 |
2,040,979 |
2,915,684 |
4,373,527 |
| 50 |
415,042 |
622,563 |
830,084 |
1,037,605 |
1,452,647 |
2,075,210 |
3,112,815 |
|
| |
|
How long do plans pay a benefit?
|
|
There are many different plans with different options on this. However a plan that replaces the lost income until you are 65 years of age is the best option. Any other will not meet the demands of your financial obligations.
|
|
|
|
